View Full Version : mortgage help.. borrowing power?
Hi all,
just wondering if anyone knows much about home loans, and in particular borrowing power?
for example.. what would your income need to be to borrow 400k?
there are a heap of online calculators but I have yet to find an accurate one!
Thanks! :)
Tam-I-Am
03-07-2009, 00:35
I think it's just too variable to answer that question. Depends on the type of loan that you apply for, what interest rate it has attached to it, whether you're self-employed or employed, whether there are 2 income streams in the family or only one and so forth and so on.
I would think that your best bet would be to contact somewhere like the Aussie mortgage brokers (http://www.aussie.com.au/home-loan/mortgage-broker/compared-to-brokers.htm). They offer free appointments, they're paid by the banks and are open and honest about the payment that they get from the banks so you can evaluate whether they're telling you the right thing - and they evaluate your suitability for a range of loans on the market (ie not just the Aussie ones!). We've used them a couple of times and they're really good :)
so true Tami! it's not exactly a cut and dry question. We are pretty straight forward. 1 income family, 2 dependants, no debts, medium credit card limit
I'm just being impatient and not wanting to wait until the banks open! :laughing: .. just thought someone might have an idea of a ballpark amount
thanks for the idea of Aussie.. hadn't thought about them. Was going to talk to our accountant tomorrow, but it does pay to shop around!
ILovePink
03-07-2009, 06:26
Yes, definately go and make yourself an appointment with Aussie! We used Aussie when we were looking for a mortgage. At the time we thought it was going to be too hard but they really took the stress out of it.
The initital appointment you have is obligatioin free and wont cost you a thing. They bring in their lap top, go through your particulars and find the home loan that is right for you. The bank we ended up going with is one I probably would never have looked at.
Once approved they also made the whole process leading up to settlement really easy ie. helped with First home owners application and other relevant forms.
I cannot recommend them enough:ecomcity::ecomcity:
I think you need to be on about $60,000 or maybe a little more to borrow that much.
DF and I just got a new home loan. We were told by a few lenders that the maximum would be about $400,000 and one did say $420,000.
DF is on ABN so his actual income is a lot more than his taxable income because of all the write offs as a business. His taxable income was approx. $37,000 in the 08/09 financial year and I earn $71,000 but am only working 2 days a week which makes my income about $30,000.
DF was approved to borrow $468,000 2 years ago on his oncome alone and $900,000 with both our incomes (although, I was working full time then.) Shows how reluctant the banks are now.
HTH.
Thanks for the replies!
I was told yesterday by one particular bank that we wouldn't qualify for a 400k loan.. I honestly was a little shocked as we can afford the repayments on it quite easily.. the repayments are just a tiny bit more than our current rent and DH's salary is about to go up. I think a call to Aussie is in order!
does anyone know if there is such a thing as an online calculator that is actually accurate?
Thanks for the replies!
I was told yesterday by one particular bank that we wouldn't qualify for a 400k loan.. I honestly was a little shocked as we can afford the repayments on it quite easily.. the repayments are just a tiny bit more than our current rent and DH's salary is about to go up. I think a call to Aussie is in order!
does anyone know if there is such a thing as an online calculator that is actually accurate?
I dont know but i like doing them and dreaming i could actually borrow that much (never really found out but i can dream)
There is a website called ziggybid where the mortgagees actually bid for your loan. You can choose the kind of loan you want etc. I think you have to sign up but there are calculators on there.
Thanks for the replies!
I was told yesterday by one particular bank that we wouldn't qualify for a 400k loan.. I honestly was a little shocked as we can afford the repayments on it quite easily.. the repayments are just a tiny bit more than our current rent and DH's salary is about to go up. I think a call to Aussie is in order!
does anyone know if there is such a thing as an online calculator that is actually accurate?
That's what we were annoyed about. The repayments on our previous mortgage before we bought this house was more than they said we couldn't afford to pay back on loan for our new house:confused:
weird isn't it lozzzza? You are getting by quite comfortably and a bank decides that you aren't? I was really quite taken aback! I felt like saying to the guy.. but we pay that NOW! .. but of course he's only doing his job.. he doesn't set the rules
off to put DS down for a nap then call aussie! :)
well, called aussie and they said they could see no reason why we couldn't borrow at least 400k! weird? .. wonder why bendigo said no?
well, called aussie and they said they could see no reason why we couldn't borrow at least 400k! weird? .. wonder why bendigo said no?
YAY for aussie...they'll save you :D
MountainGirl
03-07-2009, 13:40
I wouldnt be surprised if you got knocked back.
We currently have a $300,000 mortgage,..and own over 70% of our property outright,.... but because we had a single income with 3 kids, Aussie wouldn't lend us the same $300,000 as our current providers already do:rolleyes:. Banks are really cracking down on lending atm,.....
Good luck!
Looshkin
03-07-2009, 13:44
ooh I was going to say Jag, reading through this thread, aussies calcs are pretty good.. and I'm not just saying that because someone I know wrote their calcs, but I totally am......:p
But tis true, banks are freaking right now.
We are still looking to buy, but have decided to save up loads more and try to get a 15 yearer
The whole, 500k loan and 1mill interest thing is so insane, how can society look down on the mafia yet still keep their money in banks?
The banks are the corporatel mafia ffs.
Mrs Potts
03-07-2009, 18:48
I was told yesterday by one particular bank that we wouldn't qualify for a 400k loan.. I honestly was a little shocked as we can afford the repayments on it quite easily.. the repayments are just a tiny bit more than our current rent and DH's salary is about to go up. I think a call to Aussie is in order!
I'm looking into this at the moment as we are considering a move.
I agree with Mountain Girl...
To give you an idea: our current property is worth min $460k, we owe approx $280k. My DH earns somewhere between $60-70k (I'm a SAHM so no income) and there is no way on this planet we would get another mortgage for $280k if we sold this place and looked to buy elsewhere.
Yes the kids makes an enormous difference. A few different calculators I tried said we could get $300k with no kids, but $60k with 3.
It's not easy getting a loan right now....be prepared to be knocked back even though you could afford it...banks are being very tight right now with the recession.
PunkyDiva
03-07-2009, 19:50
DH earns 65K and with 6 kids we only qualify, on current market, to borrow 240K :laughing: Two years ago we were approved for 400K.
A good friend of mine has no kids, one income..was originally told she was allowed to borrow x amount of solalrs but as time went on the amount she was allowed to borrow kept being reduced because the banks kept changing the rules so to speak.
I know a few years ago they were throwing money at us but I wouldn't even bother trying to get a loan now (not that we want one...two mortgages is enough).
the more complex calculators are generally only made available to brokers. The main factors in your servicing being affected are the number of children you have and your credit card limit. If you are told that you can't borrow a particular amount, just ask your bank to reduce your credit card limit and you'll be surprised at your increased borrowing capacity.
Another thing that has changed in the past week is the banks' assessment of living expenses. Regardless of how much you actually spend, the bank has a set figure, dependent on the number of people living in your household. The banks have now increased this figure, so some people are now not eligible for a loan that would have been fine last week.
Lastly, most of the big banks are very strict with defaults. Even if they are repaid, some banks won't touch you. Others will consider if the debt is paid and was under 1K.
well, had an appointment this morning with a mortgage broker.. seems we meet the lending criteria for 400k :D YAY! .. more if I ask my parents to guarantor the loan! WOOHOO! looks like we might be house hunting soon.. we were going to wait until next year but hey? why not? v. exciting :)
Very exciting indeed! And don't wait if you can afford not to! they could crack down even more and then you might not find yourself being able to borrow that amount (eg. my cousin went and checked what they could borrow 6 months ago and now they have their deposit saved up and are ready to buy they can't get a loan...because the criteria changed and whilst 6 months it wouldn't have mattered that they just bought a car, it now does and their new car is costing them a house...even though they can afford both)
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